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CLUBS AND PUBS MANAGER SUMMER 2015–2016 • 33
LOYALTY PROGRAMS –
WHAT’S NEW?
BY ADAM POSNER, CEO OF DIRECTIVITY
T
he latest benchmark research study, ‘for love or
money 2015’ – the third annual loyalty program
and customer loyalty study by strategic loyalty and
retention consultancy Directivity, and retention agency Citrus
–
reveals seven new and somewhat surprising insights into:
1. the impact of loyalty programs on brand loyalty
2. the power of a loyalty program’s influence over buying
behaviour
3. evolving loyalty program benefits based on member
behaviour.
THE IMPACT OF LOYALTY PROGRAMS
ON BRAND LOYALTY
Three new insights have emerged from the research:
1. Loyalty programs influence brand switching.
Clearly, some members are up for grabs, with 28 per cent
of members having switched brands at least once to get
more benefits from another program. This jumps to 42 per
cent for men under 45. So, a memo to loyalty program
managers: keep an eye on your younger male segment,
and find ways to engage them in your program (and not
those of your competitors).
2. Loyalty programs are an important strategy for
brands in order to keep customers loyal.
The research revealed that 58 per cent of members
believe that a brand needs a loyalty program to keep
their customers loyal, and this jumps to 71 per cent for
members under 35, which might reflect the need of younger
consumers to be continuously acknowledged and rewarded
for their loyalty to a brand.
A counterargument, and an interesting insight from this result,
is that there is still a large number of members (42 per cent)
who believe that brands do not need a program to retain their
loyalty. To quote one of the respondents: ‘If the brand is good
enough, it should stand alone regardless of loyalty program’.
CUSTOMER LOYALTY